Don't send top-notch construction managers to the job site
In this session, I’d like to talk about how general contractors will work in the near future. Some of you may listen to this and think, “That’s impossible.” However, please take a step back and objectively look at the trends of the times. Think about what’s happening in other industries. Based on that, I can confidently say that this change is bound to happen.
In the future, skilled construction managers will disappear from the job site. This does not mean they will become extinct. It means they will no longer be present on the front lines of the job site. Furthermore, this change cannot be stopped by anyone’s will; it is an inevitable reality.
In a rapidly advancing organization, capable leaders issue orders to multiple units, while numerous soldiers carry out the actual work on the front lines. This has always been the norm, regardless of the era or industry. That’s because it’s the most efficient way to fight.
In the field of business administration, “maximizing the use of management resources” is a fundamental principle, but the construction industry has historically faced significant constraints in terms of how it utilizes its human resources. To begin with, there simply aren’t that many highly talented individuals. That is precisely why it is important to establish a system that allows as many people as possible to benefit from their abilities—and this can be considered the most efficient way of working.
Rather than “relying on a single genius,” we need to “make the insights of a single genius accessible to 10 or 20 people”—this is the kind of system the construction industry will need going forward.
A "rear-command" structure
What about construction sites?
Until now, we had no choice but to assign a single person to manage each worksite. This was because the range of human vision is limited, instructions could only be given on-site, and the only means of communication was through written documents. That is why the conventional wisdom that “top talent belongs on the front lines” has persisted for so many years.
However, the spread of the Internet and advances in IT technology have created other options. Today, it is possible to monitor multiple job sites simultaneously, issue instructions remotely, and share documents in real time via the cloud. It is now possible to check progress and issue instructions for revising drawings without having to visit the job site, and the speed of decision-making has increased dramatically.
Even if the staff on-site aren’t particularly skilled, as long as there’s an excellent manager overseeing operations from behind the scenes, the site will function just fine. Once this “back-office management” system is in place, a single skilled manager will be able to oversee three, five, or even more sites simultaneously.
An Effective Way to Face Reality
Until now, it was necessary to have one excellent manager for every location, but that will no longer necessarily be the case. In fact, forward-thinking companies have already adopted this approach. A prime example of this is “remote management.”
For several years now, I’ve been calling this concept the “Core Engineer Model” and advocating for a framework that even small and medium-sized companies can adopt. Simply put, it’s a model where “support staff work on-site, while top talent manages multiple sites from the back office.”
When people hear the term “remote,” some might think it’s simply about “reducing commute time.” But that’s not the essence of it. It’s about “creating a system that allows a limited number of top-tier talent to contribute across as many sites as possible.” And by doing so, we can simultaneously resolve the challenges facing the industry—such as addressing labor shortages, tackling an aging workforce, and maximizing quality, efficiency, and profits.”
In the years ahead, the population will continue to decline. This model is the only effective way to address that reality. And before long, a fierce competition will begin for the few outstanding individuals who have the potential to become “core” members of the workforce.
Times have already changed. Legal systems have evolved, and technology continues to advance. In this environment, clinging to “the old ways” will not only halt a company’s growth but will also hasten its demise.
Isn’t it about time for your company to move on to the next phase? At Genba Lab, we’re fully committed to supporting companies seeking such transformation.
